iZEV eligibility expanded, but incentives remain the same
May 9, 2022
Federal Minister of Transport Omar Alghabra announced on April 22 the long-awaited modifications to the Incentives for Zero Emission Vehicles (iZEV) program, as part of the government’s plan to have all new light vehicle sales be zero emission by 2035.
As of April 25, the program was expanded to include the purchase of additional vehicle types, such as minivans, light-duty pickup trucks, and SUVs. The program first took effect on May 1, 2019, and the incentives offered as part of it were extended through to March 2025—as revealed in this year’s federal budget.
“It’s great to see that the government is finally acknowledging what the auto industry has been saying the whole time: that larger vehicles like SUVs and trucks will be more expensive than electric vehicles due to their larger batteries,” said Huw Williams, Director of Public Affairs at CADA.
Williams adds, however, that simply increasing the limits to include a few more vehicles to the program without increasing the amount of the incentive does not address the affordability issue.
To be eligible, larger zero-emission vehicles such as minivans, pick-up trucks, and SUVs must have a base model Manufacturer’s Suggested Retail Price (MSRP) under $60,000, while higher-priced versions (up to a maximum of $70,000) are also eligible.
Williams said the federal government is moving in the right direction by expanding the program, but that Canadians need greater support to purchase a ZEV since cost remains the most significant barrier to consumer adoption. Boosting incentives would also put the government on a path to achieve its ZEV sales targets.
“Without enhanced consumer incentives and further investments from the government in things like charging infrastructure—to match the noteworthy investment that manufacturers and dealers are making towards the 100 per cent ZEV sales target—it will be increasingly difficult to meet that 2035 target,” said Williams.
For more information on what the industry is doing to reach 100 per cent ZEV sales by 2035, and what is required of the government to support that journey, dealers can visit Roadto2035.ca.